Online Home Loans

Not really – while most variable loans have all the features you’d expect from one of the big banks, if you’re going for a fixed-rate online home loan, you might find there are more restrictions and conditions around how you can use them.  For instance, fixed-rate mortgages may come with a cap on the maximum amount paid into your offset account in 12 months.  However, online lenders generally tend to be more flexible than major banks in this area.

Yes – however, you may have more difficulty finding a lender if you want to buy an unusual property or a property in a more remote area of Australia.  For example, the purchase of a beach shack in a remote location would be perceived as riskier than a unit in Brisbane CBD, as it’d naturally be more difficult to sell after repossession, so you may not get loan approval so easily.

Online home loans are subject to the same rules and restrictions as loans offered by traditional banks and lenders.  The amount you’re able to borrow will depend on your income and what other debts you have, as well as the size of the deposit you’re able to provide.

The additional costs you’ll need to think about will depend on the value of your property and where it’s located.  Stamp duty is one major additional cost you’ll need to think about, but this varies widely from state to state.  There will also be additional costs for:

• lenders Mortgage Insurance – which may apply if you don’t have a 20% deposit
• legal and conveyancing fees. Allow up to $2,000 for these.
• building inspection report costs – which will depend on the size of your property, usually around $600
• pest inspection report costs – usually around $500 for a general pest inspection
• home insurance – which all lenders will require from the moment you sign your sale contract.

Yes – with around 18% of Australians now self-employed, there are plenty of loan options for contract workers and sole traders.  You’ll need to provide proof of a steady, regular income and may be asked to provide your tax returns for the past two years to be considered eligible for your loan.

Yes – you can apply for your loan at a time that is convenient for you, as online lenders’ application portals are open 24/7.  Many lenders even give you the option of specifying when you’d like to be contacted by them so you can fit your loan application around your working life.

No – full approval isn’t guaranteed after loan pre-approval, but if you’ve submitted a strong loan application you stand a very good chance of your home loan being finally approved.